2016

20VICEnvironmentalSustainabilityHighlight Report

Management Inc

07/01/2016

Management Inc

Environmental

Energy consumption is one of the largest impacts that a building has on the environment, accounting for the majority of greenhouse gas emitted in a build-ing’s life cycle. Decreases in energy use lower operating costs, and reduce overall impacts on the environment. In order to reduce the environmental impacts of its building portfolio, 20 VIC includes energy performance reporting as one of their key sustainability performance indicators.

00.51

1.52

2.53

3.54

4.5

LEEDBuildingCertifications

Gold

Silver

Certified

Candidates

9%

41% 24%

26%

BOMABEStCertifications

Platiunum Gold Silver Pending

2015 Performance Highlights

Green Building Certifications

Green building ratings are a third party means of ranking building performance, based upon industry environmental and sustainability standards. These ratings are a major area of real estate benchmarking and reporting, and the percentage of certified buildings is a key sustainability reporting indicator for the 20 VIC portfolio.

7% Reduction in energy use from

2014 (ekWh)

11% Reduction in water use from

2014 (M³)

4% Reduction in GHG Emissions

from 2014 (t CO2e)

0.2% Increase in waste diversion from 2014 (MT)

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Management Inc

20VIC Management Inc. is a property management company, specializing in leasing and development of real estate across Canada. In an effort to ensure continual improvement in environmental stewardship, 20 VIC continued to integrate sustainability awareness at all levels of management through 2015. Pro-active initiatives such as efficiency upgrades and retro-commissioning assessments were implemented at properties across the portfolio, and a formal reduction target setting program has been rolled out.

To measure the success of the sustainability initiatives implemented in our portfolio, 20 VIC reports on key aspects of sustainability in real estate. This encompasses key performance indicators including energy performance, greenhouse gas emissions, water performance, waste diversion performance, green building ratings, performance against reduction targets, and environ-mental policies. Reporting continues to evolve over time to include additional indicators, in order to provide an increasingly comprehensive picture of 20 VIC’s sustainability performance.

20 VIC’s ongoing success with respect to environmental stewardship and sustainability performance is heavily dependent on those managing the sites on a day to day basis. 20 VIC continues to focus on energy management awareness throughout the portfolio and provide the necessary support to its operations division through specialty education and training in the interests of reducing their overall sustainability footprint.

20-VIC Management takes corporate and social responsibility into consideration in all of its decisions and actions at every level of our organization. Our focus is concentrating on the following key pillars: environmental stewardship, commu-nity engagement, employee and stakeholder commitment.

Sincerely,

Randy Scharfe George Buckles

20VIC’s Message

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Management Inc

Data collection for 20VIC portfolio’s sustainability performance was carried out using the GreenCheck program, based on RiskCheck’s interactive web-based platform, in conjunction with Energy Star’s Portfolio Manager. Monthly utility consumption and waste diversion data is collected to monitor properties’ perfor-mance against previous years as well as against reduction targets set.

The objective of the data collection and analysis is to provide information that is relevant, complete, consistent, transparent, and accurate. All figures and raw data are made available, with a clear audit trail. Our team implements a consis-tent systematic approach for new indicators and areas of data collection that are deemed to be relevant to 20 VIC and the management of its portfolio.

The reduction targets set for utility consumption by 20 VIC are aimed to reduce utility consumption and overall usage intensities as well as increase waste diver-sion performance throughout the active portfolio. 2015 marked the first year of 20 VIC rolling out a formal target setting program across the portfolio.

Progress against utility reduction targets has been good, overall. In fact end-goals for natural gas and water have already been met. Unfortunately, waste still lags at this time, with only 30% of properties meeting individual diver-sion targets. 20VIC will focus on this specific KPI throughout 2016 in order to ensure our sites are doing everything possible to divert waste from the landfill.

Decreased 12.0%

Increased 2.0%

Decreased 4.0%

Energy

Water

Waste Diversion

Greenhouse Gas

Perfomance vs. 2014

Portfolio

Decreased 7.0%

Reduction Performance

Percent Achieving Targets

Change from

Baseline

Electricity 58% -2% Natural Gas 80% -17%

Water 41% -11%

Waste 30% -0.2% Portfolio Reduction Target PerformancePortfolio performance vs. 2014

2015 Key Performance Findings

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Management Inc

Portfolio Composition

The 20VIC portfolio in 2015 consisted of a mixture of commercial and retail properties located across Canada.

In 2015, 20 VIC had a total of 37 properties reporting on sustainability in its Canadian portfolio. This consisted of 22 retail and 15 commercial properties (Figure 0.1). The total square footage of the 20 VIC portfolio is 21,300,000 sq ft. Broken down by asset class, retail properties account for 15,900,000 sq ft and commercial properties account for 5,400,000 sq ft.

In future years, as more building specific data becomes available, 20VIC will attempt to split complexes into individual buildings, since each building may have different features affecting environmental indicators, such as energy effi-ciency improvements.

2015 Key Performance Findings

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Management Inc

20VIC’s Waste Diversification Project was developed to set a 20VIC National “Green Initiative” to collectively reduce, divert or convert the amount of waste generated at Shopping Centres across the portfolio and to heighten commu-nity awareness of these efforts. To put these steps in motion, the formation of a Corporate “Green Team Committee” was established. The mission of this committee was to develop a reference manual to create a Waste Reduction Program template for 20VIC Centres across Canada, featuring an annual waste collection event and monthly tracking.

Environmental stability and accountability is an important touchpoint for the 20VIC group of companies. Focused on how to create a better relationship with the natural world and protect it from further damage, we set out to create some-thing that was recognizable, memorable and most importantly, a rallying cry around environmental stability. ACT, Always Consider Tomorrow does just that – any ACTion taken today will benefit all of us tomorrow.

Leadership

05

Management Inc

66 Slater, Ottawa Canada

Overview

66 Slater is a 266,000 square foot office building in Ottawa Ontario. Originally constructed in 1969 the property has been the focus of numerous energy conservation initiatives and upgrades over the last few years. With the owner’s full commitment and support, these combined efforts have resulted in large energy reductions propelling the site’s Energy Star Score from a 42 to a 76 in just five short years. The decision to go for a LEED Certification was made in December 2014 after an extensive LEED feasibility study was conducted. A successful LEED for Existing Buildings (O+M) Gold certification resulted in April of 2016.

Green Features

The benefits offered by a LEED certified building include lower operating costs, waste reduction, water conservation, greenhouse gas emission reduction and a healthy and safer building with better tenant productivity. 66 Slater implemented a number of initiatives including,

• Building Retro-Commissioning (Improved Operating Procedures (enhanced equipment run-time schedules and equipment maintenance procedures)

• Installed Real-Time Metering Software

• Numerous Mechanical Equipment Replacements

• Building Lighting Retrofits

• Low Flow Washroom Fixtures LEED EB (O+M) Compliant

• Enhanced Envelope Maintenance

• Improved Indoor Air Quality

Awards

• LEED Gold for Existing Building (O+M), April 2016

• 20VIC Sustainable Achievements Award – Sustainability Team Champion

Award, June 2016

Case Study

06

Management Inc

Spectrum Square, Mississauga Ontario

Overview

Spectrum Square is considered the evolution of the workplace. With Phase 1 and 2 completed, this spectacular master-planned corporate community is located in the highly desirable Airport Corporate Centre, in the GTA’s west end. When all phases are completed, Spectrum Square will be a 1,300,000 sq ft LEED Gold office campus with over 60,000 sq ft of trendy restaurants and

amenities, and over 1,200,000 sq ft of office space.

Green Features

• Over 60% of the site’s parking areas are comprised of pervious concrete paving to reduce rainfall run-off and delay entry into the city storm sewers for 72 hours.

• Reserved parking for Zip Cars and electric vehicle charging station.

• Designed to be 45% more efficient than the Model National Energy Code for Buildings.

• Low flow plumbing fixtures for reduced water usage.

• Glare free indirect lighting with sensors to provide a comfortable environment while saving energy and reducing GHG emissions.

• Zero potable water used in landscape irrigation

Awards

• 2015 – Leadership in Energy & Environmental Design (LEED) Gold, Core & Shell candidate

• 2016 – Leadership in Energy & Environmental Design (LEED) Existing Buildings, Operations & Maintenance

Case Study

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Management Inc

Reducing energy consumption can be accomplished with management tools such as inspections, initiatives, and audits to identify energy reduction opportu-nities. 20 VIC portfolio surveys its properties annually to determine what types of energy reduction initiatives are being conducted.

In 2015, the most common low/no-cost energy reduction initiative reported was lighting up- grades, followed by HVAC/building envelope upgrades. Staff training, tenant engagement, other lighting upgrades and “other” initiatives comprised the remaining types of initiatives.

EnergyReductionInitiatives

StaffTraining-5%

TenantEngagement-5%

OtherOperations/EngagementMeasures-9%

HVAC/Envelope-33%

LightingUpgrades-38%

Energy Reduction Initiatives

Energy reduction initiatives in the 20VIC portfolio by type.

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Management Inc

Through the course of 2015, 20VIC initiated 11 of building retro commissioning projects, targeting additional energy reductions in conjunction with in-depth systems functional testing. Retro- Commissioning is a process that helps to ensure that building equipment and systems perform together effectively and efficiently in order to meet your operating requirements and expecta-tions. It is an important tool to improve the overall energy performance and occupant comfort of an occupied building. 20VIC has successfully used Retro-Commissioning (RCx) as a cost-effective method to reduce expenses through improved building operations. Through this intricate process, 20VIC has found that the more the buildings operating team gets involved in the RCx process, the lower the costs, the larger the benefits, and the longer the impact.

Now more than ever, it is important to find and eliminate energy waste in build-ings. Fuel combustion in commercial buildings is responsible for a roughly 4.0% of Canada’s Green House Gas Emissions in 2012. Operating teams are able to use the ongoing commissioning plan to better understand the impact of the RCx process and communicate internally to others about issues, benefits, and need for staff involvement. As the RCx team moves through each phase of the process, the individual charged with leading the effort on the owner’s side (referred to as the owner’s representative or, simply, “owner”) can use the RCx operating guide produced as a reference to gain a better understanding of each phase and to lead the team in taking the appropriate steps to ensure success.

In 2015, 20VIC had successfully completed 11 Retro Commissioning projects

Enhanced Building Retro Commissioning

Completed 2015

Underway2016

Pending

02468

10121416

Building RetroCommissionings

Completed 2015

Underway2016

Pending

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Management Inc

20VIC’s sustainable procurement policies help reduce a building’s environ-mental impact through purchasing goods and services from environmentally responsible sources. Green procurement policies demonstrate that building management is taking further steps to lower the environmental impact of the building and enhance its reputation. Green procurement policies also encour-age the widespread adoption of environmentally-friendly products by creating demand.

More than half of 20 VIC properties have a sustainable procurement policy in place, as shown in Figure 3.3.4. Of the properties with sustainable procure-ment policies, environmental product standards are the most common type of requirements contained within these policies. Some examples of product stan-dard requirements are having third party contractors purchase green-certified products and requiring cleaning staff to use products with environmentally- friendly logos. Occupational Health & Safety and Environmental Process Standards were the next two most common policy requirements. The number of each included type of sustainable procurement policy requirement is shown in Figure 3.3.5.

Sustainable Procurement

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Management Inc

Future Energy, Water And Waste Reduction Initiatives

Energy

To identify further energy and savings opportunities for the portfolio, 20 VIC will continue to implement a series of ongoing building retro- commissioning assessments into 2016.

The retro-commissioning process provides a systematic assessment of a build-ing’s function and performance to ensure that all major systems and equipment are operating as intended. The process facilitates the efficient performance of building equipment and helps extend equipment lifetime as well as playing a critical role in maintaining energy performance and occupant comfort.

20 VIC’s overall goals of the retro-commissioning process are to:

• verify and document that the key building systems are performing in accor-dance with the specific defined operational needs

• reduce both energy consumption and operating costs

• demonstrate commitment to the overall reduction of GHG emissions portfolio wide

• develop an ongoing retro-commissioning plan to be managed and maintained by the individual site personal

• the retro-commissioning process is to recur every 5 years at a minimum as part of 20 VIC’s ongoing Energy Reductions Initiatives

Training of cleaning and maintenance staff in water conservation is critical, as these groups tend to require higher volumes of water. Only 39% of properties reported conducting such training in 2015.

Water

Improvements to irrigation systems and practices, especially at properties with large lawns or flowerbeds, can help drive water use reductions. Such improve-ments may include the installing moisture sensors; adjusting sprinkler range to ensure that water is not falling on parking lots and walkways; and the planting of native or drought-resistant plant. Ongoing stakeholder training and engagement is key in ensuring responsible water use.

A Plan

11

Management Inc

Waste

In an effort to further reduce waste from entering the landfill, stakeholder engagement and education are important initiatives that 20VIC will continue to re-inforce into 2016.

Hazardous waste procedures are important to 20VIC. Many commonplace products can cause environmental degradation or human harm, if they are not properly disposed. Improper disposal of some hazardous substances may even create regulatory liabilities, so having hazardous waste handling and disposal procedures represents strong risk management. 20VIC is committed to this cause.

20 VIC looks to enhance its waste programs and initiatives through 2016 to further improve our landfill diversion. A few examples of these initiatives are as follows;

• Food Court Waste Handling Pilot - Scullery and food waste sorting tables. Centralized, staffed, waste sorting stations to reduce customer access to non-staffed recycling stations by eliminating traditional garbage cans in the immediate vicinity of the food court only.

• Recycle centralized grease handling.

• Tenant Education programs.

We also look to improve our data quality for waste reporting. We will improve existing waste programs and building features in order to ensure they are being utilized by both management and/or tenants to the fullest extent.

In 2016, one of our retail locations will undergo a pilot test to further enhance our waste management process in the food court. The program will consist of scul-lery and food waste sorting tables. Centralized, staffed, waste sorting stations to reduce customer access to non-staffed recycling stations. Our goal will be to improve our ability to capture the waste generated in the food court more effectively and further reduce waste from entering the landfill. The program will also include improved signage, centralized grease handling and active tenant engagement and education.

A Plan

12

Management Inc

2015 marked a year of improvement and success for 20 VIC across several sustainability metrics. Energy consumption decreased from 2014 and all energy targets were met. Water use remained stable among properties reporting fully in both years, and the overall portfolio reduction target was met. Waste diver-sion also saw a modest increase. These improvements, collectively, yielded a substantial decrease in GHG emissions from the previous year.

20 VIC performed well in several non-usage KPIs. Waste management programs had acceptance rates greater than 50% for all identified waste materials, and all identified waste diversion improvement initiatives had an uptake of 50% or more. Furthermore, almost two thirds of properties have a construction waste policy. As over half also have a sustainable procurement policy.

20VIC remains committed to the cause and will continue to target improved performance in sustainability ongoing. Our success is attributed to all the key stakeholders involved and through the continued support of our various clients we look forward to more future successes.

Sustainability Success

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